What is the required method for Bft franchisees to remit payments for fees and other designated amounts?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
You must participate in our then-current electronic funds transfer and reporting program(s). Currently, we collect all amounts owed to us through our designated third-party service provider. All fees owed and any other amounts designated by us must be received or credited to our account by pre-authorized bank debit by 5:00 p.m. P.S.T. on or before the applicable due date. Your Studio may be located in a jurisdiction whose taxing authority will subject us to tax assessments on payments you submit to us for the Royalty fees and Fund Contributions. Under such circumstances, you will be required to adjust, or "gross up" your payment to us to account for these taxes.
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees are required to use pre-authorized bank debit for remitting payments. Bft mandates participation in their electronic funds transfer and reporting programs. All fees and other designated amounts must be received or credited to Bft's account by 5:00 p.m. P.S.T. on or before the applicable due date. This payment method applies to various fees, including the royalty fee, contributions to the brand development fund, and the technology fee, all of which are payable weekly or monthly.
This requirement ensures that Bft receives payments promptly and efficiently. By using electronic funds transfer (EFT), Bft can automate the collection process and reduce the risk of late or missed payments. Franchisees must ensure that their bank accounts are properly set up for pre-authorized debits to comply with this requirement. Failure to adhere to this payment method may result in late fees or other penalties.
Additionally, if a Bft studio is located in a jurisdiction that subjects Bft to tax assessments on royalty fees and fund contributions, the franchisee will be required to "gross up" their payment to account for these taxes. This means the franchisee will need to calculate and add the amount of tax to the payment so that Bft receives the full amount after taxes are deducted. This gross-up requirement ensures that Bft receives the correct net amount, regardless of local tax laws affecting the franchisee's location.